Revised and Restated Bonus Pool Arrangement for Temecula Valley Bank Executive Officers

Summary

Temecula Valley Bank has established a bonus pool arrangement for certain executive officers, allocating approximately 10% of the company's pre-tax, pre-bonus net income for annual incentive bonuses. The agreement specifies fixed or discretionary bonus amounts for named executives, including Stephen H. Wacknitz, William McGaughey, and Frank Basirico, based on their employment agreements. Additional executives may receive bonuses based on performance, as recommended by the Executive Compensation Committee and approved by the Board. The arrangement amends a prior agreement to include three more eligible officers.

EX-10.37 2 a5097066ex10-37.txt EXHIBIT 10.37 Exhibit 10.37 Exhibit 10.37--Bonus Pool Arrangement--Revised and Restated Temecula Valley Bank ("Bank") previously reported on February 7, 2006 by Form 8-K that it earmarked approximately 10% of the pre tax, pre bonus net income of Temecula Valley Bancorp Inc ("Company"), payable by the Bank, to pay annual incentive bonuses to certain officers of the Bank. This Exhibit restates and amends the prior Exhibit10.35 to name three additional executive officers that are eligible to may participate in the bonus pool. Within the group entitled to participate in pool are the executive officers designated below as well as other officers of the Bank. The bonus paid to some officers is discretionary and for others, the amount is fixed in the Employment Agreement of the involved individual. o For the year ended December 31, 2005, pursuant to the Employment Agreement of Stephen H. Wacknitz, CEO, President and Chairman of the Bank, he is entitled to receive 6% of the pre tax, pre bonus net income of the Company. For the year ended December 31, 2006, pursuant to his Employment Agreement, he is entitled to receive 5% of the pre tax, pre bonus net income of the Company. o Pursuant to the Employment Agreement of William McGaughey, Senior Executive Vice President/Director of Finance and SBA, he is entitled to receive the greater of $100,000 or 1.5% of the pre-tax net income of the Company, payable by the Bank. o Pursuant to the Employment Agreement of Frank Basirico, Senior Executive Vice President/ Chief Administrative Officer, he is entitled to receive 1% of the pre-tax, post bonus net income of the Company, payable by the Bank. o Upon the recommendation of the Executive Compensation Committee and approval by the Board of Directors, the following executives may receive an annual incentive bonus based upon performance: a. James Andrews, Executive Vice President/Real Estate Industries Group (will not participate in the pool in 2006 as his bonus will be 2.5% of pre-tax profits of his department) b. Donald A. Pitcher, Executive Vice President/Chief Financial Officer c. Martin E. Plourd, Executive Vice President/Chief Operating Officer d. Donald L. Schempp, Executive Vice President/North San Diego County Regional Manager e. Thomas Shepherd, Senior Executive Vice President/Chief Credit Officer f. Scott J. Word, Executive Vice President/ Senior Lending Officer